On Tuesday, President Joe Biden issued an ambitious executive order on artificial intelligence that aims to guarantee that the United States can swiftly and efficiently build the infrastructure required for sophisticated AI operations, such as massive data centres and new renewable power facilities.

The executive order places limitations and safeguards on companies building on government property, and it requires federal agencies to accelerate the deployment of large-scale AI technology at government sites. It also tells certain agencies to make federal land available for AI data centres and new clean power facilities. These agencies will assist in connecting the infrastructure to the electric grid and help speed up the approval process. Biden said in a statement that if AI is used properly, it will have significant consequences on national security and have the ability to greatly enhance the lives of Americans, from preventing the spread of illness to preventing the effects of climate change on communities.

The Democratic president stated that we cannot assume our leadership is secure. We will ensure that America stays ahead in building the technologies that will shape the future, and we will not compromise on important environmental standards or our shared efforts to protect clean air and water. The Defence and Energy departments will each choose a minimum of three locations where the private sector can construct AI data centres in accordance with the new regulations.

According to top administration officials, the agencies will issue competitive solicitations to private corporations for the construction of AI data centres on those federal premises. Among other measures, developers constructing on certain sites will have to cover the cost of creating those facilities and provide enough renewable power generation to meet their data centres' full capacity requirements.

According to officials, even though the US government will lease property to a firm, the materials produced there will belong to the company. Biden stated that the goal of these efforts is to speed up the shift to clean energy while being responsible and considerate of local communities. The plan also ensures that the average American won't face higher costs. Developers chosen to build on government-owned land will be required to cover all expenses related to building and running AI infrastructure, so it won't lead to increased electricity prices for consumers. The orders also require that AI data centres built on federal land be done with public labour agreements. Some of these sites will be reserved for smaller AI companies, according to government officials. Government agencies will carry out a study to understand how AI data centres affect electricity prices. The Energy Department will help state public utility commissions design electricity tariffs that can support the connection of large new customers using clean energy.

As part of the order, the Interior Department will identify government-managed lands that are suitable for clean energy development and can support data centres. According to Tarun Chhabra, the president's deputy assistant and coordinator for technology and national security, the amounts of electricity and processing power required to train and run frontier models are rising quickly and are expected to rise even further. We anticipate that top AI developers will aim to run data centres with up to five gigawatts of capacity for AI model training by 2028. Deploying AI systems at scale also requires a broader network of data centres across different parts of the country, he said.

He stated that finding a way to construct the data centres and power infrastructure needed to support frontier AI operations in the US is crucial from a national security perspective. He also added that constructing data centres in the US will keep adversaries from gaining access to these potent systems, which could harm our military and national security. That type of investment will also prevent the US from growing dependent on other countries to access AI tools, Chhabra said.

The executive order follows the Biden administration's plan to impose new limits on the export of artificial intelligence chips. This move aims to address national security issues while considering the economic interests of producers and other countries. The proposal raised concerns among chip industry leaders and European Union officials, as the export restrictions would impact 120 countries.